The 4 Types of Monopolies
Natural Monopoly-Natural monopoly is a monopoly that exists when it makes sense to only have one company running it. For example, in New Jersey we have the River Line, which is a train system that runs from Camden to Trenton. It really would make no sense to have more than one train system. So since there is only one train system it controls the whole market for people who need to use the train in that area.
Geographic Monopolies-when there is only one business in the area. In the tow of Columbus, there is a general store so it makes it easy to buy general merchandise. Since it is so close and convenient everyone shops at the general store instead of any other convenience store, plus it is the only one around.
Technological Monopolies-When a company has the legal right to a product. Like when Aspirin first came out there was only one company to produce and distribute the product. It was that way because it was protected by a patent to be the only one to produce it.
Government Monopolies- the army is an example of a government monopoly. It is provided for the people and paid for by the people, there is no other company out there that could make an army.
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